What if I Need My Money Back Before an Investment Bond Matures?

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With most bonds you have two options relating to how and when they mature. Find out what to do if you need money back before an investment bond matures with help from a personal finance professional in this free video clip.

Part of the Video Series: Money Management
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Video Transcript

Hi, my name is Andrew Schrage, co-owner of Themoneycrashers.com, personal finance website, and today we're going to discuss what to do if you need your money back before an investment bond matures. With most bonds you'll have two options, you can either sell it back to the issuer or you can sell it on the open market and with most bonds you will not be assessed a penalty. However, there are some bonds like series EE bonds where you may be assessed an early redemption penalty so you need to figure out what kind of bond you have and what the penalties are that will be assessed. If you are able to sell it back on the open market, you may be at risk for losing money on your initial investment but you can also gain money. It all depends on what's happened to interest rates since you originally purchased those bonds. If interest rates have gone up, you'll lose money on your resale of the bond. If interest rates have gone down, you'll actually make money on reselling that bond. And one other option to consider is some banks will offer a loan with your bond as collateral. All banks won't offer that but you can check with your local bank to see if they have this option. Once again, this is Andrew Schrage of Moneycrashers.com discussing what to do if you need your money back before the investment bond matures.


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